Jeonbuk Bank has become the first bank in South Korea to offer loans secured by Bitcoin (BTC) collateral, according to Korean press reports published in October.

Until this autumn, no bank in South Korea accepted Bitcoin as security for a loan. That changed when Jeonbuk Bank introduced lending against Bitcoin collateral, making it the first institution in the country's banking sector to do so. The move stands out in a market where banks' crypto-linked services have so far centered on exchange settlement accounts rather than credit products.

Bitcoin-collateralized lending has developed mainly through crypto-native platforms and specialized lenders, while conventional banks have generally kept digital assets outside the scope of loan-eligible security, citing volatility and valuation challenges. Jeonbuk Bank's program brings this type of credit inside a licensed South Korean banking institution, allowing corporate clients to borrow against Bitcoin holdings without selling them.

The product is available to corporate borrowers only. Retail clients are excluded from the offering, and the loans are secured with Bitcoin. The corporate-only design places the rollout on the institutional side of the bank's business and leaves open whether access later broadens beyond companies.

For South Korea's banking sector, the launch provides a first in-country example of how a regulated lender structures Bitcoin-backed credit. Whether other banks introduce comparable products, how regulators treat bank-held Bitcoin collateral, and whether the borrower base expands beyond corporates are the developments that will show how far this first step extends.

This report was first published by COINOTAG on November 10, 2026: https://en.coinotag.com/jeonbuk-bank-bitcoin-collateral-loans-korea-first